'Big, Beautiful' to overhaul student loan repayments

After years of on-again, off-again changes for student loan borrowers, Republicans are setting out to overhaul the repayment process. Tucked inside the big beautiful bill is a plan to scrap Biden-era income-driven plans, leaving borrowers with two options. One automatically enrolls millions into a fixed payment plan, similar to a mortgage. Borrowers have a set payment for 10 to 25 years. The other is a new income-driven option. Payments change based on your income, but it mandates even the lowest earners make a minimum monthly payment of $10. It also keeps in place a Biden-era rule that waives unpaid interest if payments are made. The Heritage Foundation says a revamp will get more borrowers back on track and ensure taxpayers don't foot the bill. But the Student Borrower Protection Center calls the changes a step backward. Student loan portfolio is headed towards a fiscal cliff, and only 38% of borrowers are in payment and current on their student loans. What this bill is going to do is lock borrowers into much higher payments for the long term. Every Democrat voted against the changes. The fate of the big beautiful bill is now in the hands of a Republican-led Senate.